MOSCOW (Sputnik) – The OPEC group of the world’s largest oil producers agreed Wednesday to cut crude oil output to a total of 32.5 million barrels per day starting next month. Non-OPEC countries will decrease their production 600,000 barrels, with Russia agreeing to take half of that from the market.
"The rise in prices will cover by a wide margin the losses that Russian companies will see from reduced production," the Russian Energy Ministry quoted Sorokin as saying on Facebook. "With every $5/bbl, the daily revenue rises by $55 million. Even with a stronger national currency this means a 600 billion rubles worth of extra budget revenues."
The oil production freeze was agreed for six months and can be renewed after the initial term expires. The Russian energy market analyst said compliance of every nation involved was key to the success of the arrangement. An increase in shale oil production could also upset the balance.
